World Bank Bonds

The International Bank for Reconstruction and Development (IBRD) was established after the Second World War and includes the World Bank, the International Development Association (IDA) and the Multilateral Investment Guarantee Agency (MIGA)

Established in 1988, the MIGA, has a specialized objective: to encourage equity investment and other direct investment flows to developing countries through the mitigation of non-commercial barriers. To carry out this mandate, MIGA offers investors guarantees against non-commercial risks

The IBRD is owned by the governments of 160 countries. Its capital is subscribed by member countries and it finances lending operations primarily from its own borrowings in the world capital markets.

While the World Bank has traditionally financed all kinds of capital infrastructure, such as roads and railways, telecommunications, and port and power facilities, the centrepiece of its development strategy emphasizes investments that can directly affect the well-being of the masses of people of developing countries by making them more productive and by integrating them as active partners in the development process.

Private investors can purchase World Bank Bonds or IBRDs on active secondary markets. They offer a high credit rating since they are backed by all 160 member countries. Additionally, the IBRD has never defaulted or suffered a loss on a loan, and it does not reschedule loans.

They qualify as Canadian property in RSPs and RIFs, and British Pound and US$ denominated IBRDs qualify for Trust accounts.

IBRDs are issued in many denominations offering a high level of currency diversification. Some of the currencies they are available in include: US Dollar, Deutsche Mark, Swiss Franc, Japanese Yen and the British Pound Sterling.